- Financial Planning
- Financial Planners
What is financial planning?
Many people do not have a clear direction and specific objectives because of problems and constant changes on a personal or social level; they have been trapped in every day’s activities. Thus, they cannot organize and implement an integrated financial strategy that will help them to achieve their personal and family goals.
Financial Planning is not a product but an integrated process. It is the process of achieving life goals through the proper management of somebody’s finances. Life objectives may include the purchase of a home, retirement planning, inheritance taxes, family protection, investment management and family budgeting. According to customer specifications may also include studies of children, long-term programs donations and hospital care.
Financial Planning consists of six steps that help someone to get a complete picture of where he is financially now in connection with his life goals. Whenever he is at the present by using this methodology, he can see what needs to be done in order to accomplish in the future his personal or family objectives.
The process involves the collection of all relevant financial information, the recording of the personal life goals, the examination of the current economic situation and it continuous with the design of a financial strategy which maps the steps that need to be taken in order to achieve the future goals and objectives.
Financial Planning provides direction and meaning to a person’s financial decisions. With the help of financial planning someone has a better picture of where he is heading in his life and how he can manage to achieve his objectives. It allows him to understand how each decision affects all other areas of his finances. By viewing each financial decision as part of a set, he can see the short-term and long-term impact on his objectives. He can also adapt more easily to life changes and can feel confident that the achievement of his objectives is in the right track.
Financial planning is a strictly personal process because it takes to account the specific needs and values of each customer..